1h 2017 30th august 2017 - dino polska...

1H 2017

Financial results

30th August 2017

Disclaimer

2

Neither this presentation (the “Presentation”) nor any copy of it nor the information contained herein being issued, and nor may this Presentation nor any copy of it nor the information contained herein be distributed directly or indirectly to or into, the United States, Canada, Australia or Japan.

By attending this meeting where this Presentation is made, or by reading the Presentation slides, you agree to be bound by the following terms, conditions and limitations. The above applies to the Presentation, the oral presentation of the information in the Presentation by the Company (as defined below) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation, if any (collectively referred to as the Presentation).

This Presentation does not constitute or form part of and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy or subscribe for or underwrite or otherwise acquire, any securities of Dino Polska S.A (the “Company”) or any member of its group (the “Group”), nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its Group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This Presentation does not constitute a recommendation regarding any securities of the Company or its Group.

This Presentation contains certain statistical and market information. Such market information has been sourced from and/or calculated based on data provided by third-party sources identified herein or by the Company, if not attributed exclusively to third-party sources. Because such market information has been prepared in part based upon estimates, assessments, adjustments and judgments which are based on the Company's or third-party sources' experience and familiarity with the sector in which the Company operates and has not been verified by an independent third party, such market information is to a certain degree subjective. While it is believed that such estimates, assessments, adjustments and judgments are reasonable and that the market information prepared appropriately reflects the sector and the market in which the Company operates, there is no assurance that such estimates, assessments, adjustments and judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sources will not differ materially from the market information included herein.

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Only currents and periodic (financial) reports of the Company are legally binding document containing information about the Company and may contain information that is different from the information contained in this Presentation.

Our achievements in 1H 2017

3

+49 stores

(+38 in 2Q 2017)

+14.7% LFL y-o-y(+16.5 in 2Q 2017 y-o-y)

+31.6% sales y-o-y(+34.1% in 2Q 2017 y-o-y)

+27.7% store pipeline y-o-y

+0.2pp gross margin y-o-y

(+0.02pp in 2Q 2017 y-o-y)+37.3% EBITDA1 y-o-y

(+43.8% in 2Q 2017 y-o-y)

1. Adjusted for the IPO-related one-off expenses

100

101

102

103

104

105

1Q

2014

2Q

2014

3Q

2014

4Q

2014

1Q

2015

2Q

2015

3Q

2015

4Q

2015

1Q

2016

2Q

2016

3Q

2016

4Q

2016

1Q

2017

2Q

2017f

Growth of GDP y-o-y (constant prices, lhs)

100

101

102

103

Consumer confidence index in Poland

(100=long-term average, rhs)

Growth of GDP and improvement in consumer sentiment

Supportive market conditions

Recovering inflation

Inflation in Poland

Source: Central Office of Statistics (GUS); Organisation for Economic Co-operation and Development

4

101.5

103.7

95

96

97

98

99

100

101

102

103

104

105

Jun-14 Mar-15 Dec-15 Sep-16 Jun-17

CPI CPI—food

5

Operational & financial highlights

5

Number of stores and sales area (’000 sqr m)

Source: Company financial statements

Sales dynamics (PLNm) and gross margin EBITDA (PLNm) and margin

Notes:

1. Adjusted for the IPO-related one-off expenses of PLN7.5m

2. Adjusted for the IPO-related one-off expenses of PLN1.1m

3. Adjusted for the IPO-related one-off expenses of PLN12.3m (of which PLN7.5m non-cash)

410

511

628

557

677

2014 2015 2016 1H 2016 1H 2017

148

210

2881

1212

1663

2014 2015 2016 1H 2016 1H 2017

2,108

2,590

3,370

1,533

2,018

2014 2015 2016 1H 2016 1H 2017

7.0% 8.1% 8.6% 7.9% 8.2%151.5 191.6 238.4 209.5 257.1 22.0% 22.6% 22.9% 22.5% 22.7%

Number of stores Revenues EBITDA

Delivering leading LFL growth

6 6

Dino Food inflation

Annual

Inflation

(deflation) %

Source: Company information, Central Office of Statistics (GUS)

2.6 4.3 3.7 0.9 0.0 (0.9) (0.9) 2.0 1.8

2.7%

5.4%4.3%

2.0%

(0.9%)(1.7%)

0.8%

3.4% 3.4%

15.5%16.6%

14.1%

7.5%

4.2%5.1%

11.3%12.6%

16.5%

(2.0%)

2.0%

6.0%

10.0%

14.0%

18.0%

2010 2011 2012 2013 2014 2015 2016 1Q 2017 2Q 2017

7

Revenues

Dynamic revenues growth

Revenues (PLNm)

7

LFL growth (%)

Sales mix

Product split by revenue (2Q 2017)

Dry food,

beverages,

alcohol and

tobacco

50.7%

Non-food

12.6%Fresh food

36.7%

Source: Company information

707

826

917 919 910

1,108

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017

+34.1% y-o-y

8.4 16.510.812.0 13.5 12.6

707

826917 919 910

1,108

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017

Gross margin

Steady increase in gross margin


8

+0.2 pp

1H: 22.7%

FY: 22.9%

2H: 23.1%1H: 22.5%

Revenues (PLNm)

Gross margin

9

EBITDA1

EBITDA growth EBITDA margins

9


38.653.1

62.169.4

49.3

77.414.5

14.9

17.218.5

19.2

20.4

53.1

68.0

79.387.9

68.5

97.8

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017

EBIT D&A

5.5%6.4% 6.8%

7.5%

5.4%7.0%

2.0%1.8%

1.9%2.0%

2.1%

1.8%7.5%

8.2%8.7%

9.6%

7.5%

8.8%

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017

EBIT D&A

(PLNm) (%)

121.0 167.2 166.2

288.3

+29.0% +43.8%

7.9% 9.1% 8.2%

8.6%

+0.02pp +0.6pp

1. Adjusted for the IPO-related one-off expenses of : PLN1,1m in 2Q ’16; PLN2,7m in 3Q ’16; PLN3,7m in 4Q ’16; PLN3,0m in 1Q ’17 and PLN9,3m in 2Q ’17

1H:+37.3% 1H:+0.3pp

Q2 2017 EBITDA bridge

10

Contribution to growth in EBIT (%)EBITDA Margin (%)

+ PLN 29.8 million

(1) Excluding one-off IPO costs of: PLN 1.1m in 2Q ’16 and PLN9.3m in 2Q ’1710

(1)

(PLNm)

8.23% 8.82%74.5 1.1 17.7 6.2 0.5

68.0

53.1

77.2 77.4 77.4

97.8

14.9 18.1

0.3 4.31.5 0.1 20.4

2Q 2016 EBITDA 2Q 2016 D&A 2Q 2016 EBIT Δ Sales at a

constant margin

Δ Cost of sales Δ Sales &

marketing costs

Δ G&A Δ Other operating

income /

expenses

2Q 2017 EBIT 2Q 2017 D&A 2Q 2017 EBITDA

11

Operating cash flow

Capex

(PLNm)


(1) Net interest expense, tax expense, change in accruals and provisions, investment activity gains and other adjustments

Capex as % of EBITDA

OCF structure

(PLNm)

Capex

134% 132% 109% 91%133%

199278

382

80 67

52 84

199

278

382

132 151

2014 2015 2016 1H 2016 1H 2017

79135

186

75 97

42

50

65

2940

39

44

47

(64)(20)

28

16

25

8

9

188

245

324

49

125

2014 2015 2016 1H 2016 1H 2017

Profit before tax D&A Change in WC Other¹

2Q

1Q

2.6x

2.0x

1.7x 1.8x

2014 2015 2016 1H 2017

12

Balance sheet


(1) Net debt to EBITDA defined as net debt divided by EBITDA (adj.) for the last twelve months

(2) Interest coverage ratio defined as EBIT divided by financial expenses for the last twelve months

Net debt / EBITDA(1) Interest coverage ratio(2)

4.0x

6.4x

7.3x 7.4x

2014 2015 2016 1H 2017

5982 90 99 116

138

198

248 237

313

197

280

338 336

429

Jan-00 Jan-00 Jan-00 Jan-00 Jan-00

Plots purchased Preliminary agreements

+27.7% r/r

Store roll-out

13

+491H 2017

No. of newly opened stores

Store pipeline+27.7%1H 2017

y-o-y

Expanding pipeline

Dec-14 Dec-15 Dec-16 Jun-17Jun-16


Store roll-out

Regional coverage

Stores per 100k inhabitants as of June 30, 2017 (in brackets as of June 30, 2016)


14

25 32 50 81 119 151 192

Net sales area (’000 m2)

No. of stores

25720 238

Network expansion to date

≤ 7.0≤ 5.0≤ 3.0≤ 1.0= 0

81 90111

154

234

324

410

511

628

677

2008 2009 2010 2011 2012 2013 2014 2015 2016 1H 2017

6.1

(5.3)

4.3

(3.9)

4.9

(4.2)

3.4

(3.1)

3.1

(2.9)

1.3

(0.8)2.5

(1.8)

0.3

(0.1)

0.3

(0.1)

1.3

(0.9)

0.1

(0.1)

1.6

(1.0)

ENTIREPOLAND

1.8(1.4)

end of 2016 2017F 2018F 2019F 2020F end of 2020F

1H: +49 stores

15

Organic store roll-out

LFL growth Improving profitability

628

Stores

Over 1,200

stores by the end of 2020

14.7%

LFL growth in 1H 2017

(vs 3.4% food inflation)

Strategy update

1

2 3


+ 0.2 pp

Gross marginimprovement

in 1H 2017 y-o-y

+ 0.3 pp

EBITDA marginimprovement

in 1H 2017 y-o-y

Q&A

16

Company financial statements (1/5)

Profit and loss statement2


(1) Unaudited

(2) Not adjusted for one-offs related to the IPO: PLN1,1m in 2Q ’16; PLN2,7m in 3Q ’16; PLN3,7m in 4Q ’16; PLN3,0m in 1Q ’17 and PLN9,3m in 2Q ’17 17

(PLN '000) 2014 2015 2016 1Q 2016(1) 2Q 2016(1) 3Q 2016(1) 4Q 2016(1) 1Q 2017(1) 2Q 2017(1 2Q’17 y-o-y +/(-),%

Sales 2,107,984 2,589,576 3,369,517 707,363 826,106 916,645 919,403 910,335 1,108,063 31.6%

Cost of sales (1,644,080) (2,004,710) (2,599,005) (547,725) (640,102) (705,374) (705,804) (701,744) (858,315) 31.3%

Gross profit 463,904 584,866 770,512 159,638 186,004 211,271 213,599 208,591 249,748 32.6%

Other operating income 1,522 3,120 2,616 1,022 374 661 559 476 736 -13.2%

Selling and marketing costs (324,634) (391,580) (505,855) (113,285) (123,030) (137,364) (132,176) (149,746) (160,725) 31.4%

Administrative expenses and

general overheads(31,338) (35,354) (49,434) (8,603) (11,261) (14,092) (15,478) (12,903) (21,417) 72.8%

Other operating expenses (3,667) (998) (2,250) (194) (137) (1,064) (855) (96) (292) 17.2%

Operating profit 105,787 160,054 215,589 38,578 51,950 59,412 65,649 46,322 68,050 26.3%

Financial income 168 99 473 34 (7) 156 290 98 42 418.5%

Financial expenses (26,662) (24,922) (29,607) (7,769) (7,351) (8,034) (6,453) (8,415) (9,438) 18.1%

Profit before tax 79,293 135,231 186,455 30,843 44,434 51,692 59,486 38,005 58,654 28.4%

Income tax (13,156) (13,059) (35,245) (7,456) (6,696) 423 (21,516) (7,550) (11,967) 37.9%

Net profit from continuing

operations66,137 122,172 151,210 23,387 37,896 51,957 37,970 30,455 46,687 25.9%

(PLN '000) 2014 2015 2016 1Q 2016(1) 2Q 2016(1) 3Q 2016(1) 4Q 2016(1) 1Q 2017(1) 2Q 2017(1)

Assets

Property, plant and equipment 798,948 1,024,199 1,337,207 1,090,826 1,180,504 1,260,513 1,337,207 1,386,389 1,496,962

Intangible assets 90,700 92,253 93,072 91,952 91,465 92,145 93,072 92,510 92,200

Other non-financial assets (long term) 1,885 – – – – – – – –

Deferred tax assets 37,049 34,311 26,867 30,352 32,755 34,353 26,867 21,919 23,158

Total non-current assets 928,582 1,150,763 1,457,146 1,213,130 1,304,724 1,387,011 1,457,146 1,500,818 1,612,320

Inventories 182,286 212,146 276,541 221,320 221,273 234,936 276,541 290,707 306,906

Trade and other receivables 18,796 21,687 33,665 9,382 11,025 17,605 33,665 19,155 29,253

Income tax receivables 48 105 613 113 8 27 613 603 30

Other non-financial assets 13,515 20,742 22,447 28,618 28,982 26,318 22,447 32,395 36,856

Cash and cash equivalents 23,739 33,920 66,428 13,818 24,495 42,965 66,428 36,425 43,050

Total current assets 238,384 288,600 399,694 273,251 285,783 321,851 399,694 379,285 416,095

Total assets 1,166,966 1,439,363 1,856,840 1,486,381 1,590,507 1,708,862 1,856,840 1,880,103 2,028,415

Equity and liabilities

Equity (attrib. to the equity holders of the parent entity) 410,073 532,235 683,476 555,653 593,549 645,506 683,476 713,962 768,118

Share capital 9,804 9,804 9,804 9,804 9,804 9,804 9,804 9,804 9,804

Reserve capital 316,048 393,019 510,720 510,720 510,720 510,720 510,720 790,168 1,111,860

Retained earnings 84,221 129,412 162,952 35,129 73,025 124,982 162,952 (86,010) (361,046)

Non-controlling interests – – – – – – – – –

Total equity 410,073 532,235 683,476 555,653 593,549 645,506 683,476 713,962 768,118


Balance sheet

18Source: Company financial statements

(1) Unaudited

(PLN '000) 2014 2015 2016 1Q 2016(1) 2Q 2016(1) 3Q 2016(1) 4Q 2016(1) 1Q 2017(1) 2Q 2017(1

Interest-bearing loans, borrowings and finance lease liabilities 285,962 361,774 452,378 370,010 399,163 436,725 452,378 487,167 508,545

Other liabilities – – 300 0 758 0 300 270 270

Provisions for employee benefits 533 758 1,115 758 300 758 1,115 1,115 1,115

Deferred tax liabilities 1,572 588 5,498 3,410 7,930 3,856 5,498 6,206 6,280

Accruals 76 73 87 67 63 59 87 81 75

Total long-term liabilities 288,143 363,193 459,378 374,245 408,214 441,398 459,378 494,839 516,285

Current liabilities

Trade and other payables 337,620 429,195 574,426 367,473 374,526 369,961 574,426 531,859 585,043

Current portion of interest-bearing loans and finance lease

liabilities118,187 101,504 110,173 178,255 199,276 237,514 110,173 112,531 124,875

Income tax liabilities 4,608 3,368 10,268 7 3,439 3,089 10,268 4,241 15,530

Accruals 8,286 9,796 13,227 10,676 11,431 11,322 13,227 14,831 18,338

Provisions for employee benefits 49 72 5,892 72 72 72 5,892 7,840 226

Total current liabilities 468,750 543,935 713,986 556,483 588,744 621,958 713,986 671,302 744,012

Total liabilities 756,893 907,128 1,173,364 930,728 996,958 1,063,356 1,173,364 1,166,141 1,260,297

Total equity and liabilities 1,166,966 1,439,363 1,856,840 1,486,381 1,590,507 1,708,862 1,856,840 1,880,103 2,028,415


Balance sheet

19Source: Company financial statements

(1) Unaudited

(PLN '000) 2014 2015 2016 1Q 2016(1) 2Q 2016(1) 3Q 2016(1) 4Q 2016(1) 1Q 2017(1) 2Q 2017(1

Cash flows from operating activities

Profit before tax 79,293 135,231 186,455 30,843 44,592 51,534 59,486 38,005 58,654

Adjustments for 109,185 110,163 137,868 (36,334) 9,564 18,287 146,351 (6,959) 35,574

Depreciation and amortization 41,880 50,177 65,202 14,492 14,918 17,246 18,546 19,176 20,418

Gain/(loss) from investing activities 417 193 1,574 (9) 65 198 1,320 21 158

Change in the balance of receivables 59,041 (10,808) (15,592) 7,331 (547) 2,494 (24,870) 13,657 (17,271)

Change in the balance of inventories 25,464 (29,860) (64,395) (9,175) 49 (13,663) (41,606) (14,166) (16,198)

Change in the balance of payables except loans and

borrowings(45,513) 84,204 127,224 (49,114) (12,793) 9,604 179,527 (23,678) 37,556

Interest income (153) (60) (440) 0 (27) 27 (440) (19) (19)

Interest expenses 26,486 24,955 29,658 7,652 7,216 7,934 6,856 8,471 9,516

Change in the balance of accruals 2,975 3,859 4,928 (3,497) 1,725 64 6,636 (4,489) 2,829

Change in the balance of provisions 249 114 6,178 0 0 0 6,178 1,948 (7,615)

Income tax paid (1,639) (12,599) (16,507) (4,052) (1,042) (5,617) (5,796) (7,918) (1,262)

Other (22) (12) 38 38 0 0 0 38 7,462

Net CF from operating activities 188,478 245,394 324,323 (5,491) 54,156 69,821 205,837 31,046 94,228


Cash flow


(1) Unaudited 20

(PLN '000) 2014 2015 2016 1Q 2016(1) 2Q 2016(1) 3Q 2016(1) 4Q 2016(1) 1Q 2017(1) 2Q 2017(1

Cash flows from investing activities

Proceeds from sale of property, plant and equipment and intangibles 374 925 1,112 648 (1,453) (3,085) 5,002 79 1,057

Purchase of property, plant and equipment and intangibles (170,722) (243,487) (311,732) (84,807) (73,973) (101,582) (51,370) (82,976) (89,295)

Sell of other financial assets – – – 0 0 0 0 0 0

Interest received 153 60 440 7 20 28 385 19 19

Net CF from investing activities (170,195) (242,502) (310,180) (84,152) (75,406) (104,639) (45,983) (82,878) (88,219)

Cash flows from financing activities

Payment of financial lease liabilities (24,456) (30,024) (43,902) (9,464) (11,006) (11,064) (12,368) (9,760) (14,773)

Proceeds from loans and borrowings 111,653 141,770 219,061 98,814 62,358 87,597 (29,708) 57,489 41,393

Repayment of loans and borrowings (72,771) (79,502) (127,136) (12,150) (12,216) (15,256) (87,514) (17,430) (16,487)

Interest paid (26,486) (24,955) (29,658) (7,659) (7,209) (7,989) (6,801) (8,470) (9,517)

Net CF from financing activities (12,060) 7,289 18,365 69,541 31,927 53,288 (136,391) 21,829 616

Net increase/(decrease) in cash and cash equivalents 6,223 10,181 32,508 (20,102) 10,677 18,470 23,463 (30,003) 6,625

Cash and cash equivalents at the beginning of the period 17,516 23,739 33,920 33,920 13,818 24,495 42,965 66,428 36,425

Cash and cash equivalents at the end of the period 23,739 33,920 66,428 13,818 24,495 42,965 66,428 36,425 43,050


Cash flow


(1) Unaudited 21

Contact information

Grzegorz UrazińskiHead of Investor Relations

[email protected]+48 695 234 561

Ul. Ostrowska 12263-700 Krotoszyn

Poland

22

http://grupadino.pl

http://grupadino.pl/

1h 2017 30th august 2017 - dino polska...

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